Read more about Surge in oil price rattles markets as Ukraine conflict intensifies on Business Standard. Oil prices soared again as the Ukraine war triggered a dash for commodities that could be in short supply, while stock markets slipped
soared again on Thursday as the Ukraine war triggered a dash for commodities that could be in short supply, while stock slipped as investors worried about higher inflation and slowing economic growth. Brent crude oil rose more than 5% to within a whisker of $120 per barrel before settling at $114. That still leaves it up nearly 20% since last Thursday, while everything from coal to natural gas and aluminium are surging as Western nations tighten sanctions on Russia following its invasion of Ukraine. Russia calls its actions a “special operation”. “Russia supplies around 30% of Europe’s gas and oil imports and accounts for around 11% of world oil production,” said Shane Oliver, head of investment strategy at fund manager AMP. “In short, investors are worried about a stagflationary shock.” MSCI added to Russia’s financial isolation by deciding to shut the country out of its emerging index, while FTSE Russell said Russia would be removed from all its indices.
